Income Tax Department is alerting the taxpayers...

In the process of Income Tax Returns filed till July 31, the department is finding out on the basis of AI this year that the taxpayers whose TDS was deducted. He had to claim the deduction for receiving this amount as refund. If a taxpayer has claimed multiple refunds under different sections, he may be getting such a notice. In this regard, many taxpayers are getting a mail saying that if the taxpayer does not have proof of investment or the taxpayer has taken wrong exemption in the return, then immediately verify and revise the return. 

Notice is being sent to such salaried and small traders who have taken exemption in 80G.

200% penalty and additional interest may be levied if added to the assessment.

Verify claim deduction in return

The reason being stated in the notice is that the deduction is much higher than in Form 16, so verify the deduction claimed in the return and match it correctly with Form 16. In the notice being sent to the businessman, it is being written, 'Verify that the gross total income (ie total income) declared by you has decreased. 

Notices coming in these cases-

CA Pankaj Shah, former president of indore CA branch, said that notice is being sent to such salaried and small traders who have taken exemption under section 80G for the first time. Along with this, notices are also coming to such taxpayers who have taken exemption under LIC. Notice is being sent to the taxpayer by marking the exemption taken as interest rebate, rent rebate, any other tax free investment on home loan. Taxpayers receiving such notices should first collect evidence of all investments claimed by them. The taxpayer has 15 days to respond. It is better to revise the return even if the taxpayer does not have proof of exemption, otherwise increase in valuation may attract additional interest and 200% penalty.